SE21670 - Benefits: subsidised meals including canteen meals and working lunches

Section 155(5) ICTA 1988, Extra Statutory Concession A74

If an employer provides free or subsidised meals to its employees or directors there may be relief from tax by exemption or deduction under:

• the "canteen" exemption in Section 155(5) ICTA 1988 ( SE21671)
• Extra Statutory Concession A74 which exempts some free or subsidised meals on an employer's business premises or in a canteen ( SE21675 onwards)
• the meal is part and parcel of the employee or director travelling on qualifying business travel
• the employee or director's meal is part of business entertaining for which there is a matching deduction under Section 198 ICTA 1988.
• If none of these apply then, for those employees and directors within Part V Chapter II ICTA 1988 ( SE20100), a benefits charge will arise. The cash equivalent of the benefit is the amount of the expense ( SE21102) incurred by the employer, or other provider of the meal, in connection with the provision of the meal.